Asia: Top destination of Abu Dhabi exports

Total non-oil merchandise trade grew by Dh30.25bn or 27.7% to Dh139.42bn in 2011

By

WAM

PublishedMonday, August 13, 2012

New cruise terminal at Mina Zayed, Abu Dhabi (SUPPLIED)

Statistics Centre - Abu Dhabi (SCAD) issued on Monday its annual report on non-oil merchandise trade through the ports of Abu for the year 2011, to support decision makers and businesses with accurate and up-to-date statistics on the non-oil merchandise that entered or exited the territory of Abu Dhabi through the emirate's ports (including air, sea and land ports) during last year, highlighting the relative importance of each individual component of imports, non-oil exports and re-exports. It worth noting that the movement of merchandise reported in this statistic does not represent the whole of Abu Dhabi Emirate's foreign trade, a large proportion of which flows through the ports of other emirates.

Non-oil merchandise trade, 2011: A year on year comparison shows that total non-oil merchandise trade grew by Dh30.25 billion or 27.7 per cent to Dh139.42 billion in 2011, with imports growing by Dh29.80 billion (34 per cent), re-exports by Dh0.58 billion (5.3 per cent), while no-oil exports declined by Dh0.13 billion or 1.1 per cent.

The contribution of imports to total foreign merchandise trade increased from 79.3 per cent in 2010 to 83.5.3 per cent in 2011. By contrast, the share of total non-oil exports retreated from 20.7 per cent in 2010 to 16.5 per cent in 2011.

The total value of foreign merchandise trade refers to the sum of non-oil export, re-exports and imports.

Total non-oil export/import coverage ratio In regard to the total non-oil export/import coverage indicator, which expresses the extent to which imported goods can be covered by total non-oil exports, SCAD points to fall in the ratio from 26.1 per cent in 2010 to 19.8 per cent in 2011 as a result of a larger increase of 34.4 per cent in imports compared with total non-oil exports (two per cent) in 2011.

Non-oil exports by Standard International Trade Classification (SITC)

The value of non-oil exports amounted to Dh11.48 billion in 2011, retreating by Dh0.13 billion or 1.1 per cent, year-on-year. The largest fall was recorded in the "Machinery and transport equipment", which dropped by Dh1.25 billion or 20 per cent. However, this decline was partially offset by increases of Dh0.88 billion (42.7 per cent) in exports of "Manufactured goods and Dh0.18 billion in (7.1 per cent) in the exports of "Chemicals and related products" (plastics). The combined contribution of the aforementioned three groups made 92.8 per cent of total non-oil exports in 2011, down from 93.5 per cent in 2010.

"Floating or submersible drilling or production platforms were the key products in the "Machinery and transport equipment" category. "Chemicals and related products" consisted mainly of plastics and articles thereof, while "Manufactured goods classified chiefly by material" included mainly articles of iron or steel and other metals.

Non-oil exports by Broad Economic Category (BEC)

As the report finds, "Industrial supplies not elsewhere specified" accounted for the largest share of non-oil exports by BEC in 2011. Exports of this category totalled Dh5.43 billion, which makes up 47.3 per cent of non-oil exports by value. "Capital goods (except transport equipment)" was the second largest category, amounting to Dh4.77 billion, which marks a decrease of Dh1.35 billion or 22.1 compared with 2010.

The combined contribution of the aforesaid two categories was 88.9 per cent of non-oil exports in 2011, down from 92.1 per cent compared with 2010.

Volume of non-oil exports by shipping method The volume of non-oil exports in 2011 was 1.53 million tons, outstripping the previous year's figure by 0.13 million tons or 9.0 per cent. Exports by land increased by 20.1 per cent in 2011, and accounted for 60.0 per cent of total of non-oil exports by volume. Over the same period, the volume of non-oil exports by sea declined by 5.1 per cent resulting in a lowering of 39.3 per cent in the share of exports by sea in 2011. On the other hand shipments by air transport more than doubled, contributing 0.7 percent of non-oil exports in 2011.

Geographic distribution of non-oil exports

According to SCAD's report Asia was the top destination (receiving 55.3 per cent) of Abu Dhabi's non-oil exports during 2011, with the total value of exports to these countries increasing by Dh0.97 billion (18.1 per cent) compared with 2010. Non-oil exports to North America increased by Dh2.71 billion (100 per cent) during the same period, mainly due to the exports of "floating or submersible drilling or production platforms" to Canada. The third largest regional market the emirate's non-oil exports in 2011 was South America, which received exports worth Dh1.67 billion, marking a decrease of Dh1.13 billion (-40.4 per cent) compared with 2010.

The report also presents an analysis of the exports to the top three regions of Asia, North America and South America.

Non-oil exports to Asian countries

The report points to an increase in non-oil exports to Asia in 2011, due largely to an increase in exports to Saudi Arabia which rose by Dh0.85 billion (70.7 per cent) compared with 2010, followed by Oman, despite a decrease in exports to the sultanate by Dh0.20 billion (20.6 per cent) over the period. The third and fourth largest destinations of non-oil exports in the region during 2011 were Qatar and India, which imported products worth Dh0.63 billion each. The top four countries accounted for a combined share of 64.5 per cent of Abu Dhabi's exports to Asia in 2011, compared with 60.8 per cent in 2010.

Non-oil exports to Saudi Arabia

The year 2011 saw non-oil exports to Saudi Arabia grow by Dh0.85 billion (70.7 per cent) in the value compared with 2010. The largest groups of non-oil exports to Saudi Arabia in 2011 were "iron and steel", "copper and articles thereof", and "plastics and articles thereof", which accounted for 31.4 per cent, 28.9 per cent and 10.5 per cent of 2011 non-oil exports to Saudi Arabia, respectively. The overall share of these three commodities in non-oil exports to Saudi Arabia during 2011 was 70.9 per cent, compared with 49.4 per cent in 2010.

The main products within the "iron and steel" category were bars and rods of stainless steel and flat rolled products of iron or non-alloy steel.

Non-oil exports to North America The report reveals a significant increase in the value of non-oil exports to North America during 2011, dominated by exports to Canada, mainly, "floating or submersible drilling or production platforms", which came to represent one of the Emirate's high value export products.

Non-oil exports to South America countries Non-oil exports to South America were again dominated by the export of "floating or submersible drilling or production platforms" to Brazil. The total export value of this product retreated in 2011, which is reflected in a 40.4 per cent decline in overall non-oil exports to South America in 2011 compared with 2010.

Imports by Standard International Trade Classification (SITC)

Abu Dhabi imports totalled Dh116.37 billion in 2011, marking an increase of Dh29.80 billion (34.4 per cent) compared with 2010. There was an increase in imports across all SITC commodity sections between 2010 and 2011.

In particular, there was an increase of Dh11.61 billion (25.6 per cent) in "machinery and transport equipment", which includes mechanical appliances and motor vehicles. A significant increase of Dh9.24 billion (45.2 per cent) was also recorded in "manufactured goods classified chiefly by material", which includes products of iron, steel, copper, plastic and textile goods. These top two SITC sections represented 74.4 per cent of the value of imports in 2011, compared with 75.9 per cent in 2010.

Imports by Broad Economic Category (BEC)

According to the report data, "industrial supplies not elsewhere specified" was the largest BEC category of imports in 2011, representing 39.5 percent of total imports by value. This category amounted to Dh46.02 billion, an increase of Dh16.58 billion (56.3 per cent) compared with 2010. The second largest category in 2011 was "capital goods (except transport equipment), amounting to Dh30.62 billion, an increase of Dh9.36 billion (44 per cent) compared with 2010. The third largest category was "transport equipment and parts" with imports of Dh24.40 billion in 2011. These top three categories contributed 86.8 per cent of total imports in 2011, up from 85.7 per cent in 2010.

Imports by shipping method

The volume of imports increased by 3.47 million tons (27.2 per cent) to 16.24 million tons during 2011 compared with 2010. The volume of imports by sea increased by 38.3 per cent compared with 2010, contributing 69.8 per cent of the total in 2011. Over the same period, imports by land advanced 7.5 per cent, making up 29.8 per cent of total volume, while imports by air declined 12.2 per cent compared with 2010, accounting for only 0.3 per cent of total imports in 2011.

Geographic distribution of imports

The distribution of imports by geography continued to be concentrated in three continents, namely, Asia, Europe and North America, with a combined contribution of 91.3 per cent of total imports in 2011, compared with 93.4 per cent in 2010.

Imports from Asian countries

SCAD's report indicated an increase in imports from Asia by Dh15.97 billion (41.6 %) to Dh54.32 billion in 2011, up from Dh38.36 billion in 2010. Imports from Saudi Arabia increased by Dh2.58 billion (26.6%) compared with 2010. Imports from South Korea climbed by Dh8.75 billion (100%). This significant rise was mainly due to imports of "articles of iron and steel" and "mechanical appliances and parts". The third largest source of Abu Dhabi imports in the region of Asia during 2011 was Japan, with imports amounting to Dh9.90 billion. These top three countries made up 62.5 per cent of imports from Asia in 2011, compared with 57.5 per cent in 2010.

Imports from (GCC) countries

Imports from GCC countries grew 26 per cent to Dh17.23 billion in 2011, up from Dh13.67 billion in 2010.
Imports from Saudi Arabia contributed 71.2 per cent of total imports from the GCC region, followed by Bahrain with a share of 9.9 per cent. The only GCC trading partner country to show a decrease in imports was Qatar, as imports from this GCC member declined by 27.1 per cent in 2011 compared with 2010.

Compared with 2010, imports from Saudi Arabia grew by Dh2.58 billion (26.6%) in 2011. The key import components were "plastics and articles thereof" (18.8%), "iron and steel" (10.2%) and "electrical machinery, sound recorders and parts" (9.9%). The combined share of these three sections during 2011 was 38.9 per cent of imports from Saudi Arabia, up from 36.1 per cent in 2010.

Imports from European countries The year 2011 saw imports from European countries grow by Dh8.11 billion (27.3 %) to Dh37.79 billion, up from Dh29.68 billion in 2010. Germany topped the emirate's European import partners with imports worth Dh9.57 billion, marking an increase of Dh0.54 billion (6.0%) compared with 2010. Imports from Italy increased by Dh3.35 billion (82.8%) over the period, mainly due to the imports of "mechanical appliances and parts" and "electrical machinery, sound recorders and parts". The third and fourth largest import partners were France (Dh5.76 billion) and United Kingdom (Dh4.60 billion). Together, the top four countries accounted for 72.3 per cent of imports from Europe in 2011, compared with 68.7 per cent in 2010.

Imports from Germany Imports from Germany advanced by Dh0.54 billion compared with 2010, reflecting an increase of Dh0.49 billion in "other commodities" (including aircraft parts, medical instruments, glass, plastics and pharmaceutical products), Dh 0.32 billion in "vehicles other than railway; parts" and Dh0.32 billion in "electrical machinery, sound recorders and parts). However, these increase were partially offset by a fall of Dh0.81 billion in "mechanical appliances and parts".

Imports from North America Abu Dhabi imports from North America an increased by Dh1.29 billion (10.1%) to Dh14.09 billion in 2011, up from Dh12.80 billion in 2010. USA contributed 95.4 per cent of Abu Dhabi's total imports from North America in 2011, followed by Canada with a share of 4.6 per cent.

Re-exports by Broad Economic Categories (BEC)

"Capital goods (except transport equipment)" was the largest BEC category of re-exports in 2011, constituting 42.5 per cent of the total value. Compared with 2010, this category decreased Dh0.31 billion (6.0%) to Dh4.91 billion. The second largest BEC category was "consumer goods not elsewhere specified", which increase by Dh0.47 billion (14.1%) to Dh3.76 billion compared with 2010. The third largest category was "transport equipment and parts" with re-exports of Dh1.90 billion in 2011. These top three categories contributed 91.5 percent of total re-exports in 2011, up from 90.3 per cent in 2010.

Volume of re-exports by shipping method During 2011, total re-exports increased to 0.34 million tons, up 2.8 percent compared with 2010. Re-exports by sea increased 10.5 percent in 2011, contributing 36.7 per cent of total re-exports by volume. Over the same period, re-exports by land declined by 7.2 per cent, reducing the share of re-exports by land to 35.4 per cent in 2011. The volume of re-exports by air increased by 7.8 percent making up 28.0 per cent of total re-exports in 2011.

Geographic distribution of re-exports

Asia continues topped the list of Abu Dhabi's re-exports destination, accounting for a combined share of 89.5 percent of the total in 2011. Re-exports to Europe increased by Dh0.27 billion (58.0%) in 2011 compared with 2010, with Germany, the United Kingdom and France at the top of re-export destinations. The third largest region for re-export trade was Africa, which accounted for 3.1 per cent of the total, with the main destinations being Egypt and Sudan.

Re-exports to Asian countries

Re-exports to Asian countries grew by Dh0.31 billion (3.1%) in 2011 compared with 2010. The leading destinations for re-exports were Bahrain (33.1%), Saudi Arabia (15.4%), Qatar (15.0%) and Kuwait (10.7%).

SCAD noted that the goods captured in the report do not belong entirely to the Emirate of Abu Dhabi nor do they fully represent Abu Dhabi non-oil merchandise trade as some of these goods might belong to other Emirates. Furthermore the report does not record Abu Dhabi trade through ports of the other Emirates.

Oil and gas
Butti Al Qubaisi, Director General of Statistics Centre - Abu Dhabi, pointed out that the Centre's merchandise trade report does not include foreign trade in oil and gas as the statistics of this sector are received within different timeframes and are currently reported separately in the Statistical Year Book of Abu Dhabi. However, SCAD seeks to compile a single bulletin covering both oil and non-oil foreign merchandise trade.

The annual issue of the bulletin for 2011 monitors the various indicators of non-oil foreign merchandise trade through the ports of Abu Dhabi in 2011 and the historical progress made during the recent years under the wise leadership of HH Sheikh Khalifa bin Zayed Al Nahyan, President of the United Arab Emirates and Ruler of Abu Dhabi and the unlimited support of HH General Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, Deputy Supreme Commander of the Armed Forces and Chairman of the Executive Council of the Emirate of Abu Dhabi.

The rapid development that the UAE at large and the Emirate of Abu Dhabi in particular are experiencing in the diverse aspects of economic and cultural life has underscored the importance of the various form of statistical data.

"As with other publications of Statistics Centre - Abu Dhabi, we acknowledge the cooperation of our strategic partners, which enables us to produce reliable, data-rich and high-quality statistical bulletins. In this regard, we are particularly grateful to the Customs Administration (Department of Finance) for their unstinting support to the Centre through their constant supply of data on the movement of merchandise through the ports of Abu Dhabi", remarked SCAD's DG, expressing his hope that it will meet the needs of development in the trade sector and serve sustainable economic development at all levels.